Contents Evolution and Functions of Money Role of Money Flow of Funds Accounts The Circular Flow of Money Monetary Standards

Transcription

1 Contents 1. Evolution and Functions of Money The Barter System; The Evolution of Money; Classification of Money; Money and Near Money; Nature and Definition of Money; Theoretical and Empirical Definitions of Money; Functions of Money; 2. Role of Money Introduction; Social Significance of Role of Money; Defects of Money; Role of Money in a Capitalist Economy; Role of Money in a Socialist Economy; 3. Flow of Funds Accounts Introduction; Flow of Funds Matrix; Difference between Flow of Funds Accounts and National Income Accounts; Importance of Flow of Funds Accounts; Limitations of Flow of Funds Accounts; 4. The Circular Flow of Money Meaning; Circular Flow of Money between Household and Business Sectors; Circular Flow of Money with Saving and Investment; Circular Flow of Money with Government Sector; Circular Flow of Money with the Foreign Sector; Importance of the Circular Flow of Money; 5. Monetary Standards Meaning and Types of Monetary Standards; The Gold Standard; Bimetallism; Gresham s Law; Paper Currency Standard; Standard Systems of Note Issue; 6. Functions of Commercial Banks Meaning; Functions of Commercial Banks; The Balance Sheet of a Commercial Bank; Role of Commercial Banks in a Developing Country; 7. Organisation and Structure of Commercial Banks Introduction; Unit Banking; Branch Banking; Group Banking; Chain Banking; Mixed Banking; Correspondent Banking; 8. Commercal Bank Policies and Principles Introduction; Objectives of Portfolio Management; Theories of Portfolio Management; Investment Policy of a Commercial Bank; Essentials of a Sound Banking System; 9. Credit Creation by Commercial Banks Do Banks Create Credit?; The Process of Credit Creation; Limitations on the Power of Banks to Create Credit; 10. Central Banking: Functions and Credit Control Introduction; Difference Between Central Bank and Commercial Bank; Definition of a Central Bank; Functions of a Central Bank; Central Bank as the Controller of Credit; Role of Central Bank In a Developing Economy;. 11. Index Numbers Meaning of Index Numbers; Methods of Construction of Index Number; Difficulties in the construction of index numbers; Uses of Index Numbers;.

2 12. Changes in the Value of Money: The Quantity Theory of Money and Its Variants Meaning of Value of Money; Fisher s Quantity Theory of Money; The Cash Transactions Approach; The Cambridge Equations: The Cash Balances Approach; Transactions Approach vs Cash Balances Approach; Superiority of Cash Balances Approach over Transactions Approach; 13. Income and Expenditure Theory Introduction; Income-Expenditure Approach; Saving-Investment Approach; 14. The Keynesian Theory of Money and Prices Introduction; Key ties Reformulated Quantity Theory of Money; Superiority of the Keynesian Theory over the Traditional Quantity Theory of Money; Criticisms of Keynes Theory of Money and Prices; 15. Friedman s Restatement of the Quantity Theory of Money Introduction; Friedman s Theory; Friedman vs Keynes; 16. The Supply of Money Definitions of Money Supply; Determinants of Money Supply; High-Powered Money and the Money Multiplier; Measures of Money Supply in India; Money Supply and Liquidity; Derivation of Money Multipliers; 17. The Demand of Money Introduction; The Classical Approach; The Keynesian Approach; Liquidity Preference; The Post-Keynesian Approaches; 18. Theories of Interest Rates The Classical Theory of Interest; The Loanable Funds Theory of Interest; Keynes Liquidity Preference Theory of Interest; Indeterminancy of the Classical, the Loanable Funds and the Keynesian Theories of Interest; Modern Theory of Interest; Natural and Market Rate of Interest; 19. Term Structure of Interest Rates Meaning; Factors Determining the Term Structure of Interest Rates; Theories of Term Structure of Interest Rates; 20. Inflation and Deflation Introduction; Meaning of Inflation; The Inflationary Gap; Demand-Pull or Monetary Theory of Inflation; Cost-Push Inflation; Demand-Pull vs Cost-Push Inflation; Mixed Demand-Pull Cost-Push Inflation; Sectoral or Demand-Shift Inflation; Structural Inflation; Mark-up Inflation; Open and Suppressed Inflation; The Phillips Curve; The Relation between Unemployment and Inflation; Friedman s View: The Long-run Phillips Curve; Policy Implications of Phillips Curve; Stagflation; Causes of Inflation; Measures to Control Inflation; Effects of Inflation; Deflation; Control of Deflation; 21. A Financial Markets Meaning; Types or Classification of Financial Markets; Institutions or Composition of Financial Markets; Efficiency of Financial Markets; Types of Efficient Markets; Functions of Financial Markets; Working of Financial Market; Role of Financial Markets in Economic Development; 22. Money and Capital Markets The Money Market; The Capital Market; Distinction between Money and Capital Markets; Inter-relations between Money and Capital Markets;

3 23. Financial Dualism Meaning; Effects of Financial Dualism; Suggestions to Reduce Financial Dualism; 24. Financial Intermediaries Meaning; Process of Intermediation; Role of Financial Intermediaries; Role of Financial Intermediaries in Economic Growth; Financial Intermediaries and Underdeveloped Countries; Financial Intermediaries in the Saving-Investment Process; 25. Non-Bank Financial Intermediaries (NBFIs) Meaning; Role of Non-Bank Financial Intermediaries; Non-Bank Financial Intermediaries and Monetary Policy: The Gurley-Shaw Thesis; Distinction between Banks and Non-Bank Financial Intermediaries; 26. Inside Money and Outside Money Meaning; Importance; Gross Money and Net Money Doctrine; 27. Neutrality and Non-Neutrality of Money Meaning; Neutrality of Money in the Classical System; Neutrality of Money in the Keynesian System; Non-Neutrality of Money in Keynesian and Post-Keynesian Theories; 28. The Real Balance Effect Patinkin s Integration of Monetary Theory and Value Theory; The Pigou Effect; Differences between the Pigou Effect and the Real Balance Effect; 29. Patinkin s General Equilibrium Model Introduction; The Patinkin Model; Defects of the Patinkin Model; 30. IS and LM Functions: General Equilibrium of Product and Money Markets Introduction; The Product Market Equilibrium; The Money Market Equilibrium; General Equilibrium of Product and Money Market; Changes in General Equilibrium; 31. Monetary Policy: Objectives, Targets and Indicators Introduction; Meaning of Monetary Policy; Objectives or Goals of Monetary Policy; Tradeoff in Monetary Goals; Targets of Monetary Policy; Indicators of Monetary Policy; 32. Monetary Policy: Instruments and Types Instruments of Monetary Policy; Expansionary Monetary Policy; Restrictive Monetary Policy; Role of Monetary Policy in a Developing Economy; Rules vs Discretion in Monetary Policy; 33. Time Lags in Monetary Policy Meaning and Types; Nature of the Lag; Criticisms; Policy Implications; 34. Role of Money in the Classical and Keynesian Theories Introduction; The Classical View; The Keynesian View; Monetary Equilibrium; 35. Classical, Keynesian and Modern Views on Monetary Policy The Classical View; The Keynesian View; The Modern View; 36. The Liquidity Theory of Money Introduction; The Radcliff Committee View: The Radcliff-Sayers Thesis; The Gurley-Shaw View; 37. The Monetarist Revolution Meaning; Main Features; Criticisms; 38. Monetary Transmission Mechanism Introduction; Transmission Mechanism in the Classical Theory; Transmission Mechanism in the Keynesian Theory; Transmission Mechanism in the Monetarist Theory; Transmission Mechanism in the Neo-Keynesian Theory; Contents...iii

4 39. Monetarism versus Keynesianism Introduction; Theoretical Differences; Policy Differences; Conclusion; 40. Fiscal Policy and Debt Management Fiscal Policy; Debt Management; 41. Effectiveness of Monetary and Fiscal Policy Introduction; Monetary Policy; Fiscal Policy; The Synthesist View: Three Range Analysis; Monetary Policy; Fiscal Policy; Monetary-Fiscal Mix; 42. Assignment of Policy Instruments to Targets Introduction; The Assignment Problem; 43. Crowding Out Effect and Availability Doctrine Crowding Out Effect; Crowding Out and Fiscal Policy; Credit Availability Doctrine or Roosa Effect; 44. The Rational Expectations Hypothesis 45. Business Cycles Meaning; Characteristics of Business Cycles; Phases of a Business Cycle; Causes of Business Cycles; Effects of Business Cycles; Theories of Business Cycles; Measures to Control Business Cycles or Stabilisation Policies. 46. Balance of Payments : Meaning and Components Meaning; Structure of Balance of Payments Accounts; Is Balance of Payments Always in Equilibrium?; Measuring Deficit or Surplus in Balance of Payments; Balance of Trade and Balance of Payments; Disequilibrium in Balance of Payments; Measures to Correct Deficit in Balance of Payments. 47. Adjustment Mechanisms of Balance of Payments Introduction; Automatic Price Adjustment Under Gold Standard; Automatic Price Adjustment Under Flexible Exchange Rates (Price Effect); The Elasticity Approach;The Absorption Approach; The Monetary Approach. 48. The International Monetary Fund Origin of IMF; Objectives of the Fund; Organisation and Structure of the Fund; Quotas and Their Fixation; Functions of the Fund; Exchange Rates; Fund Borrowings; General Arrangements to Borrow (GAB); Fund Lending; Credit Tranches; Critical Appraisal of the Fund s Working; The Role of Gold in the IMF; India and the IMF; Special Drawings Rights (SDRs); 49. The World Bank Functions; Membership; Organisation; Capital Structure; Funding Strategy; Borrowings and Lending Activities; Other Activities; Critical Appraisal; India and the World Bank; 50. The World Bank Group The International Development Association (IDA); The International Finance Corporation (IFC); The Multinational Investment Guarantee Agency (MIGA); 51. International Liquidity Meaning; Need and Problem of International Liquidity;International Reserves; IMF and International Liquidity; Role of the IMF in Increasing World Liquidity; Its Criticisms. 52. International Monetary System Meaning; The Bretton Woods System; The Breakdown of the Bretton Woods System; The Present International Monetary System.

5 53. Euro-Currency Market Meaning; Origin and Growth; Features of Euro-currency Market; How Does it Function?; Role in International Financial System. 54. European Monetary System and Euro Introduction; The European Monetary System; The European Monetary Union : The Euro. 55. The Asian Development Bank Origin; Its Objectives; Its Membership; Its Management; Its Financial Resources; Its Functions; Its Progress; Its Evaluation; 56. Present Monetary System of India Introduction; India s Present Monetary System; 57. Indian Capital Market Features of Indian Capital Market; Working of Indian Capital Market; Defects of Indian Capital Market; Some Suggestions for Improvement; 58. Indian Money Market Meaning; Nature of Indian Money Market; Functions of Indian Money Market; Constituents of Indian Money Market; Defects of Indian Money Market; Suggestions to Improve Indian Money Market; 59. Moneylenders and Indigenous Bankers Moneylenders; Indigenous Bankers; Distinctions between Indigenous Bankers and Moneylenders; Distinction between Indigenous Bankers and Commercial Banks; 60. Cooperative Banks in India Primary Agricultural Credit Societies (PACSs); Central Cooperative Banks (CCBs); State Cooperative Banks (SCBs); Land Development Banks (LDBs); Strengthening the Cooperative Structure; 61. Regional Rural Banks and NABARD Rural Banks; Regional Rural Banks (RRBs); National Bank for Agriculture and Rural Development (NABARD); 62. Exchange Banks Functions of Exchange Banks; Working of Exchange Banks in India; Defects in the Working of Exchange Banks; Suggestions for Improvement; Participation of Indian Banks in Financing Foreign Trade; 63. Commercial Banks in India Classification of Commercial Banks; Functions of Indian Commercial Banks; Working Results of Scheduled Commercial Banks; 64. Banking Legislation in India Banking Regulation Act, 1949; Banking Amendment Act, 1994; 65. Nationalisation of Commercial Banks Introduction; Justification of Nationalisation of Commercial Banks; Objectives of Bank Nationalisation; A Critical Appraisal of the Functioning of Nationalised or Public Sector Banks in India; Partial Privatisation of Nationalised Banks; 66. The Reserve Bank of India Its Constitution; Its Organisational Structure and Management; Objectives of Reserve Bank of India; Functions of Reserve Bank of India; RBI and Agricultural Finance; RBI and Industrial Finance; RBI and Bill Market Scheme; Exchange Control Management by RBI; Critical Appraisal of the Functioning of the RBI; Contents...v

6 67. Monetary Policy of Reserve Bank of India Introduction; Methods of Credit Control; Critical Appraisal of Monetary Policy; Causes of Failure of Monetary Policy; 68. The State Bank of India Introduction; Its Organisational Structure; Its Objectives; Its Functions; Working or Achievements of State Bank of India; 69. Recent Trends in the Banking System Introduction; Social Banking; Innovative Banking; Deposit Insurance Corporation; Defects of Indian Banking System; Suggestions to Improve Working; Narasimhan Committee Report; Recent Banking Reforms; 70. Development Banking in India Introduction; Meaning; Functions of Development Banks; Importance of Development Banks; Development Banks in India Industrial Finance Corporation of India (IFCI); Industrial Development Bank of India (IDBI); Industrial Credit and Investment Corporation of India (ICICI); Industrial Reconstruction Bank of India (IRBI); Small Industries Development Bank of India (SIDBI); Export-Import Bank of India (Exim Bank); State Financial Corporations (SFCs); State Industrial Development Corporations (SIDCs); Appraisal of the Development Banking in India; 71. Non-Bank Financial Intermediaries in India Non-Banking Financial Companies (NBFCs); Operations of NBFCs; Critical Appraisal; 72. Financial Reforms in India Introduction; Banking Sector Reforms; Money Market Reforms; Capital Market Reforms; 73. Role and Achievements of SEBI 74. Mutual Funds in India Role of Mutual Funds; Objectives; Benefits; Schemes; Return from Mutual Funds; Growth and Functioning of Mutual Funds in India; Money Market Mutual Funds; 75. Merchant Banking in India Introduction; Growth and Working of Merchant Banking in India; Defects and Remedies of Merchant Banking; SELECT BIBLIOGRAPHY INDEX